Adani Enterprises FPO: What GMP signals as issue opens on Friday

Adani Enterprises FPO: The follow-on public offer (FPO) of Adani Enterprises Ltd is going to open for subscription on 27th January 2023. The FPO worth 20,000 crore will remain open for bidding till 31st January 2023. The Adani group company has already fixed Adani Enterprises FPO price band at 3,112 to 3,276 per equity share. The management of this flagship Adani group company has already announced that net proceeds of the follow-on issue will be used for debt repayment and capital expenditure requirements of the company and its subsidiaries.

Meanwhile, after bloodbath on Dalal Street on Wednesday session and heavy sell off in Adani group stocks, grey market is signaling muted sentiments in regard to Adani Enterprises FPO. As per the market observers, Adani Enterprises FPO GMP (grey market premium) today is 45, which is 55 below its Wednesday GMP of 100. They said that dip in grey market sentiment is mainly due to the trend reversal on Dalal Street as market failed to break its strong hurdle placed at 18,200 to 18,250 levels.

However, Hindenburg Research taking short position in Adani group stocks further dented the grey market sentiment, said market observers. They said that much will depend upon the kind of response this follow-on offer receives. A strong response is expected to change the grey market mood as issue is opening on Friday this week.

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However, stock market experts advised investors to look at the fundamentals of the company instead of grey market mood. They said that GMP has no connect with the financials of the company as it is completely non-regulated and speculative. They told investors to scan balance sheet of the company instead of checking the Adani Enterprises FPO GMP, which keep on changing from time to time.

Adani Enterprises FPO review

Giving ‘subscribe’ tag to Adani Enterprises FPO, Ashika Research — Equities says, “On financial performance front, over FY18-21, Adani Enterprises has reported a 26.5 per cent CAGR growth in topline. EBITDA margin during the period has maintained at around 5 per cent. Average RoE stood at ~5.0%, over FY18-21. Thus, we recommend our investors to Subscribe the Adani Enterprise FPO as it is a nation building group and it is foraying into sunrise sector that is green hydrogen which has immense growth opportunity.”

Adani Enterprises share price ended at 3,405 apiece on NSE after the close of Wednesday session.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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